Senator Who Wrote Controversial Crypto Tax Rule Proposes Modest Revision

Senators Mark Warner (D-Va.) and Rob Portman (R-Ohio) submitted a competing amendment on Thursday to an earlier amendment to the Senate infrastructure bill’s cryptocurrency provision.

• The amendment, a copy of which was obtained by CoinDesk, is limited in scope, excluding only proof-of-work mining, or the selling of hardware or software that permits individuals to control private keys that provide access to digital assets.
• In a tweet Thursday evening, Jerry Brito, the executive director of the Washington, D.C.-based think tank Coin Center called the amendment "disastrous." He added: "And it does nothing for software devs. Ridiculous!"
• The crypto-specific provision would raise $28 billion toward $1 trillion in infrastructure improvements but has been contentious, briefly holding up the entire infrastructure bill.
• Senators Ron Wyden (D-Ore.), Cynthia Lummis (R-Wyo.) and Pat Toomey (R-Pa.) proposed their amendment earlier Thursday to ensure miners, node operators, developers and other non-custodial crypto industry participants are exempt from the crypto tax reporting provision.
• The Biden administration formerly supported what it called the "compromise" in a statement shared on Twitter late Thursday and attributed to White House Deputy Press Secretary Andrew Bates.
• Wyden tweeted that the competing amendment "provides a government-sanctioned safe harbor for the most climate-damaging form of crypto tech, called proof-of-work. It would be a mistake for the climate and for innovation to advance this amendment."
• Similarly, Lummis tweeted that, "Our amendment protects miners as well as hardware and software developers. The other does not. The choice is clear."

UPDATE (Aug. 6, 2021, 02:48 UTC): Adds White House support for Warner-Portman-Sinema amendment; Wyden response.